I'm new to parks and still getting used to the idea of loosening my credit standards vs the apartment industry. Just "rejected" my very first applicant 2 weeks after closing on this property - should I reconsider?
A long-time resident who moved out of the park has his house for sale at roughly $8,000. He found a buyer to pay him cash for it and referred them to me to run the application.
What I got was the following - a "dual" application for two people to live in the trailer and both names would be on the title (though the mom admitted to me this is really for her daughter - mom clearly lives with her husband in a stick built house she owns elsewhere in town):
Mom: 50'something with FICO over 700, no arrests, no evictions, owns a single family home, has a full time $13/hr job at the local four year university and has been employed there over two years.
Daughter: 31 y/o single mom daughter with three kids age 0/1/2, 554 FICO, an eviction 18 months ago, roughly $1,100 / mth in verifiable income cobbled together from child support and food stamps.
Daughter's prior rental history: Lease is up on current apartment. Has only been there one year and wants to save money by owning her own mobile home. Current landlord says she was late 7 times in 12 months but has no balance due. Prior landlord says she left the apartment with $3,000 in damage, was always late on the rent, problems with police getting called.
Conclusion: Hemmed and hawed and decided to approve their application with roughly 5X the normal security deposit - $,1500 instead of $350. Mom was furious, kept pointing out that she was completely clean, would own the trailer free and clear. Kept saying she wouldn't put down this kind of security deposit to rent "a piece of dirt."
Am I being too strict? Was I crazy to request a deposit this high? My fear is that one day mom gets fed up with loser, jobless daughter and decides to break the lease. Daughter can't pay for anything and by now has trashed the home - which I take through abandonment and then have to spend several thousand dollars rehabbing to get it back on the market.
The housing and rental market here is very strong and I haven't even cleaned up the park cosmetically or advertised and I have multiple applications and calls coming in from people simply driving by.
All opinions appreciated!